Delta Air Lines Announces September Quarter 2026 Financial Results
DELTA AIR LINES, INC. (DAL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CONTACT: Investor Relations Corporate Communications 404-715-2170 404-715-2554 InvestorRelations@delta.com Media@delta.com Delta Air Lines Announces September Quarter 2026 Financial Results Strength of results and outlook demonstrate Delta’s structural durability in
How this was made
The 30-second read
Why it matters
The earnings beat and forward‑looking guidance provide fresh data that can shift market expectations for the airline sector.
Market read
Delta's earnings and guidance are likely to move its stock and influence airline sector sentiment.
What to watch
Potential headwinds from labor disputes or future fuel price spikes are not addressed in the filing.
Record September quarter adjusted revenue of $17.6 billion rose 16 percent, while adjusted diluted EPS of $1.72 increased 1 percent despite adjusted fuel expense rising 62 percent.
Broad demand and yield strength drove record adjusted revenue and maintained adjusted pre-tax income growth, but GAAP profitability declined sharply and adjusted operating margin contracted amid substantially higher fuel and non-fuel costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenue, September quarter 2026GAAP | $20.19B | – | 21 % |
| Operating revenue, adjusted, September quarter 2026non-GAAP | $17.59B | – | 16 % |
| Operating income, September quarter 2026GAAP | $1.45B | – | (14) % |
| Operating margin, September quarter 2026GAAP | 7.2 % | – | (2.9) pts |
| Operating income, adjusted, September quarter 2026non-GAAP | $1.66B | – | (2) % |
| Operating margin, adjusted, September quarter 2026non-GAAP | 9.4 % | – | (1.7) pts |
| Pre-tax income, September quarter 2026GAAP | $1.07B | – | (40) % |
| Pre-tax margin, September quarter 2026GAAP | 5.3 % | – | (5.4) pts |
| Pre-tax income, adjusted, September quarter 2026non-GAAP | $1.50B | – | 1 % |
| Pre-tax margin, adjusted, September quarter 2026non-GAAP | 8.5 % | – | (1.2) pts |
| Net income, September quarter 2026GAAP | $756M | – | (47) % |
| Net income, adjusted, September quarter 2026non-GAAP | $1.13B | – | 2 % |
| Diluted earnings per share, September quarter 2026GAAP | $1.15 | – | (47) % |
| Diluted earnings per share, adjusted, September quarter 2026non-GAAP | $1.72 | – | 1 % |
| Operating expense, September quarter 2026GAAP | $18.73B | – | 25 % |
| Operating expense, adjusted, September quarter 2026non-GAAP | $15.92B | – | 18 % |
| Non-fuel cost, September quarter 2026non-GAAP | $11.13B | – | 8 % |
| Non-fuel unit cost (CASM-Ex), September quarter 2026non-GAAP | 14.03¢ | – | 7.3 % |
| Fuel expense, September quarter 2026GAAP | $4.35B | – | 69 % |
| Fuel expense, adjusted, September quarter 2026non-GAAP | $4.14B | – | 62 % |
| Average fuel price per gallon, adjusted, September quarter 2026non-GAAP | $3.61 | – | 60 % |
| Operating cash flow, September quarter 2026GAAP | $1.71B | – | (7) % |
| Operating cash flow, adjusted, September quarter 2026non-GAAP | $1.72B | – | (6) % |
| Free cash flow, September quarter 2026non-GAAP | $463M | – | (44) % |
| Gross capital expenditures, September quarter 2026non-GAAP | $1.41B | – | 27 % |
| Total debt and finance lease obligations, September quarter 2026GAAP | $12.85B | – | (14) % |
| Adjusted net debt, September quarter 2026non-GAAP | $13.35B | – | (14) % |
| Total operating revenue, nine months ended September 30, 2026GAAP | $55.80B | – | 18 % |
| Operating income, nine months ended September 30, 2026GAAP | $3.82B | – | (12) % |
| Net income, nine months ended September 30, 2026GAAP | $2.07B | – | (45) % |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $3.15 | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $1.9B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DomesticUnit revenue grew 16% on strong yields and a load factor that was 1 point higher than last year. | $10.59B | – | 16% |
| AtlanticUnit revenue grew 11% and yield grew 12%. | $3.32B | – | 11% |
| Latin AmericaUnit revenue improved 22% over last year. | $867M | – | 14% |
| PacificRevenue grew 13% on 8% higher capacity. | $756M | – | 13% |
| CargoGrowth was driven by roughly equal growth between volume and yield. | $301M | – | 29 % |
| MROYear-to-date revenue was $990 million. | $296M | – | 28 % |
| Loyalty and relatedTotal loyalty revenue grew 18 percent and American Express remuneration grew 15 percent. | $1.35B | – | 19 % |
| Ticket - Premium productsPremium revenue grew 18 percent year-over-year with double-digit unit revenue growth driven by yield and load factor on a 6 percent increase in seats. | $6.82B | – | 18 % |
| Ticket - Main cabinMain cabin unit revenue grew 17 percent over prior year on seats down low-single digits. | $6.80B | – | 12 % |
4Q26 and FY 2026 outlook
- Revenue4Q26 Total Revenue YoY (%): Approx. 20%
- Note4Q26 Earnings Per Share: $1.15 - $1.65
- NoteFY 2026 Earnings Per Share: $5.10 - $5.60
- NoteFY 2026 Operating Margin: 7% - 9%
- NoteFY 2026 Free Cash Flow ($B): Approx. $2.5
- NoteFY 2026 Gross Leverage: Approx. 2.2x
- NoteGuidance for the December quarter assumes fuel at the forward curve as of October 2, 2026, and includes a refinery benefit of approximately $0.40 per gallon.
- NoteProjected all-in fuel price for the quarter: approximately $4.25 per gallon.
Capital returns
- Payments on debt and finance lease obligations for the September quarter of $1.2 billion.
- Cash dividends of $141 million.
- Plan to pay down more than $2 billion of debt in 2026.
What drove it
- Adjusted total unit revenue (TRASM) grew 15 percent over prior year, accelerating 3 points from the prior quarter.
- Diverse revenue streams accounted for 61 percent of total revenue in the September quarter.
- Premium revenue grew 18 percent year-over-year, cargo revenue increased 29 percent year-over-year, and MRO revenue grew 28 percent year-over-year.
- Corporate sales grew double-digits in all sectors, led by Banking, Technology, and Energy.
- Adjusted fuel price of $3.61 per gallon increased 60 percent year-over-year with a refinery benefit of 13¢ per gallon.
- Thirteen aircraft were delivered in the quarter, including A350-900, A321neo, and A220-300 aircraft.
Concerns
- GAAP operating income declined 14 percent and GAAP net income declined 47 percent year-over-year.
- Adjusted operating margin declined to 9.4 percent from 11.1 percent and adjusted pre-tax margin declined to 8.5 percent from 9.7 percent.
- Adjusted non-fuel unit costs increased 7.3 percent year-over-year on flat capacity, driven primarily by higher crew and revenue-related costs.
- Free cash flow declined 44 percent year-over-year to $463 million.
- Adjusted fuel expense increased 62 percent year-over-year.
What to watch
- December-quarter revenue growth outlook of approximately 20 percent over last year.
- December-quarter earnings per share guidance of $1.15 - $1.65.
- December-quarter seats expected to grow less than 2 percent, including a reduction in Main Cabin seats.
- Expected December-quarter non-fuel unit cost growth improvement of 1 to 2 points sequentially.
- FY 2026 free cash flow outlook of approximately $2.5 billion and debt paydown of more than $2 billion.
- Projected all-in December-quarter fuel price of approximately $4.25 per gallon.
Balance sheet and cash flow
- Cash and cash equivalents of $3,787 million at September 30, 2026.
- Liquidity of $6.9 billion at quarter-end, including $3.1 billion in undrawn revolver capacity.
- Air Traffic Liability ended the quarter at $9.6 billion.
- Adjusted net debt of $13.4 billion at September quarter end, a reduction of $950 million from the end of 2025.
- Total debt and finance lease obligations of $12,851 million at September 30, 2026.
- Operating cash flow of $1.7 billion and free cash flow of $463 million in the September quarter.
- Free cash flow of $1.9 billion year-to-date.
Analysis
Delta reported record September-quarter adjusted operating revenue of $17,585 million, up 16 %, while GAAP operating revenue rose 21 % to $20,186 million. Passenger revenue increased 15 % to $15,534 million, supported by premium-products revenue growth of 18 %, main-cabin revenue growth of 12 %, and broad geographic performance. Domestic revenue was $10,594 million and increased 16%, while Atlantic, Latin America, and Pacific revenue increased 11%, 14%, and 13%, respectively. Adjusted TRASM rose 15 %, and management said the gain accelerated 3 points from the prior quarter.
The revenue mix remained increasingly diversified. Premium products and diverse revenue streams represented 61 % of adjusted operating revenue. Cargo revenue rose 29 % to $301 million, MRO revenue rose 28 % to $296 million, and loyalty and related revenue rose 19 % to $1,346 million. The company also cited 18 percent total loyalty revenue growth, 15 percent growth in American Express remuneration, and double-digit corporate-sales growth in every sector.
Profitability reflected significant fuel and cost pressure. GAAP operating income fell 14 % to $1,454 million and GAAP diluted EPS fell 47 % to $1.15. Adjusted operating income was $1,662 million, down 2 %, while adjusted diluted EPS was $1.72, up 1 %. Adjusted fuel expense increased 62 % to $4,143 million and adjusted fuel price rose 60 % to $3.61 per gallon. Adjusted non-fuel unit cost increased 7.3 % to 14.03¢, and adjusted operating margin declined to 9.4 % from 11.1 %.
Cash generation remained positive but was lower year-over-year. September-quarter operating cash flow was $1,713 million, adjusted operating cash flow was $1,716 million, and free cash flow was $463 million versus $833 million. Gross capital expenditures were $1,408 million. Adjusted net debt was $13,350 million, down $950 million from the end of 2025, while the company made $1.2 billion of payments on debt and finance lease obligations during the quarter.
For the December quarter, Delta expects total revenue growth of approximately 20 percent over last year and EPS of $1.15 - $1.65. The outlook assumes fuel at the forward curve as of October 2, 2026, a refinery benefit of approximately $0.40 per gallon, and an all-in fuel price of approximately $4.25 per gallon. Full-year guidance calls for EPS of $5.10 - $5.60, operating margin of 7% - 9%, free cash flow of approximately $2.5 billion, and gross leverage of approximately 2.2x.
Management, verbatim
Demand remains strong, supported by consumers’ growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy.
Ed Bastian, Delta’s chief executive officer
Revenue momentum is continuing in the December quarter, with strength across all products and geographies, supporting our outlook for total revenue growth of approximately 20 percent over last year.
Joe Esposito, Delta’s chief commercial officer
The Delta team continues to deliver for our customers, widening our industry lead in on-time performance and achieving record baggage results.
Erik Snell, Delta’s chief financial officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for most September-quarter financial metrics
- Gross margin
- Share repurchases
- Forward guidance for operating expenses
- Forward guidance for tax rate
- Prior guidance for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Delta Air Lines filed a Form 8‑K reporting September quarter 2026 results and full‑year outlook.
Ticker impact
Delta Air Lines provided September quarter results and issued guidance for full‑year EPS $5.10‑$5.60 and 20% revenue growth.
likely upside as investors price in stronger earnings and growth outlook
The 8‑K contains first‑report earnings, record revenue and issued full‑year EPS guidance for a large‑cap airline, which typically moves the share price on the day of release.
Market effects
Airline sector may see broader rally if Delta's guidance exceeds expectations, supporting demand outlook.
U.S. travel and fuel‑cost environment could influence related carriers and airport operators.
Delta's guidance may affect global airline indices and travel‑related ETFs.
Counterpoint
If fuel costs remain high, the guidance may be overly optimistic, risking a pull‑back.
Key entities
- companyDelta Air Lines
U.S. airline reporting earnings and guidance.
